Mumbai: Two suspected Hizbul Mujahideen operatives arrested here have been booked under a stringent law even as their police custody was extended for five days by a local court Wednesday.

Farooq Naiku (37) and Mohammed Talukdar (32) were allegedly involved in circulation of fake Indian currency and had carried out surveillance of various vital installations across the country.

The duo, apprehended on January 16 from a guest house in Masjid Bunder, South Mumbai, with fake notes with a face value of Rs 27,200, were today charged under the Unlawful Activities (Prevention) Act, a senior police officer said.

Subsequently, they were remanded in police custody till January 23. As their custody ended today, the accused were produced before a Metropolitan Magistrate court, which extended their custody till January 28, the official added.

The duo`s links with Hizbul Mujahideen, a terror outfit active in Jammu and Kashmir, were uncovered during thorough interrogation after their arrest in the fake currency case, police have said.

Farooq, born and brought up in J&K`s Baramulla district, was staying in neighbouring Navi Mumbai for last one-and-a half-year, posing as a dry fruits trader.